JULY 1999 - House, Senate Come Through - Without fanfare, the Massachusetts House and Senate have quietly delivered a three percent pension cost-of-living increase to retired public employees and survivors.

State and teacher pensioners who retired prior to July 1998 will automatically receive this increase effective in their July checks. A delay in the budget's signing could mean a delayed COLA increase payment, but retroactive to July.

Locally, city, county, town, authority and district retirement boards must receive approval from their governing authority (city council, county retirement board advisory council, etc.) before the 3% to pre-July, 1998 retirees and survivors can be paid.

It is expected that most local retirees will receive a 1.3% CPI increase in July and ensuing months while awaiting local approval to pay 3% (retroactive). Since city councils and county retirement board advisory councils meet on a regular basis, action should be forthcoming within a few months. The greatest delay will be in towns that have their own retirement systems and must wait until town meeting, which in many cases will not be until next spring.

There will be no change in the $12,000 base this year. With the percentage more than doubled, a base change is impossible. The base is the maximum amount of any pension to which the percentage can be applied. Under this law a retiree with a pension of $12,000 or greater would receive an increase of $360, as opposed to $156 under the previously scheduled CPI formula. A higher base is a future priority.

After leaving the Governor's office in January without a COLA provision, the budget's next stop was the House. At that point House Ways and Means Chairman Paul Haley (D-Weymouth) added the 3% COLA language for state and teacher retirees to the state treasurer's section.

In order to provide for local government retirees, an amendment was needed. This was co-sponsored by Rep. Paul Casey (D-Winchester), the House Chairman of the Public Service Committee, and Rep. David Donnelly (D-Boston). During House budget debate in early May, Casey successfully carried the amendment on the House floor.

Prior to the Senate taking action on the budget, Senator Brian Joyce (D-Milton), Senate Chairman of the Public Service Committee, moved that our Association's 3% COLA bill (S-1288), originally filed by Sen. Richard Moore (D-Uxbridge) and Rep. Timothy Toomey (D-Cambridge), receive a favorable report from his committee. The motion was passed unanimously, giving further impetus to our drive toward a 3% COLA.

The drive gained further momentum when Senator Mark Montigny (D-New Bedford) Chairman of the Senate Ways and Means Committee released his committee's budget recommendation on June 4, with statutory language for state, teacher and local government retirees' 3% COLA included.

On June 10, the Senate completed its debate on the budget with the COLA intact, and there was great rejoicing at 11 Beacon Street.